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Monday, February 29, 2016

Here's Hyundai's take on what the Govt can do for the Auto Sector

What is the industry sentiment for Budget 2016?

Passenger
vehicles have shown a positive trajectory with volume growth of 8.5%
for the calendar year 2015. This growth was generated on improving
fundamentals of GDP growth, reduction of interest rates and controlled
fuel prices. The improved customer sentiments propel customer purchase
for new vehicles. Challenges were that rural India saw drop in demand
with average monsoons and drop in purchasing power.
​
Industry sentiment is of cautious optimism with many product launches planned for the year as showcased in Auto Expo 2016. Hyundai has
led the market with double the industry growth at 15.75% and we are
optimistic of our leadership position with sustained growth in volume
targets 500,000 by launching two new products this year including a new
Compact SUV, Hyundai Tucson
and maximizing the Modern Premium expression for customers along with
the three Indian Car of the Year brands- Creta, Elite i20 and Grand i10.

Expectations from Union Budget 2016?

·
We expect the government will initiate policy measures to further
investments which will create employment and sustain the positive GDP
growth above 7%.

· Relaxation on indirect taxes to drive in increased conversions through result in a higher disposable income amongst consumers.

·
We expect the government to consider Vehicle Scrappage Policy for older
vehicles which are low on fuel efficiency and high on emissions.

· A uniform GST policy will provide a uniform tax regime and boost the business environment.